Amaya Gaming Releases 2011 Financial Results, Reports $1.92 Million Loss

Canadian based online wagering software developer Amaya Gaming Group has released its fourth quarter and full year 2011 financial results, highlighting a rise in revenues but a CDN $1.92 million loss for the year.

Fourth quarter 2011 revenues rose to CDN $9.49 million, up from $2.096 million the year before, with net earnings at CDN $2.88 million, up from $591,401 during the same period last year.

For the full year, Amaya generated total revenues of CDN $18.38 million, up 204% compared to the CDN $6.05 million the company generated in 2010. Gross profits for the year were CDN $17.02 million, up from $4.73 million in 2010.

The results were not all positive however, as Amaya reported a loss of CDN $1.92 million for the full year, up from $82,995 during 2010.

Commenting on his company's performance, Amaya Gaming CEO David Baazov said: "Amaya capped a breakthrough year with an outstanding fourth quarter. We tripled revenues in 2011 as contract wins turned into active deployments. This was the first year in which we gained real traction in the government solutions vertical. And in the hospitality vertical, we deployed a significant number of Mosino units which will strengthen the recurring revenue stream."

"Looking ahead, we see additional opportunities in the public sector, as more governments - including several in North America - are considering the expansion of regulated gaming activities in their jurisdictions. Even on the strength of the existing contracts we have already deployed or are in the process of implementing, we are very well positioned for continued rapid growth in 2012."

Company highlights for 2011 were:

• an agreement to provide virtual horse racing systems to Société des Casinos du Québec;

• an exclusive 20-year contract with the National Lottery of Moldova to provide a full range of gaming solutions including lottery systems, video lottery terminals, sports betting, and digital gaming;

• an exclusive 10-year contract with the Government of the Republic of Armenia to implement a national lottery program and to provide its central reporting and integrity software solutions;

• the selection by Loto-Québec subsidiary Société du Jeu Virtuel du Québec (SJVQ) to provide content for its gaming website, Espace-jeux.

• the successful deployment of several recurring-revenue gaming initiatives, including: Kwachu 6/48, a Short Message Service ("SMS")-based lottery in the Republic of Kenya; Betkenya.com, the official online gaming website of the Republic of Kenya; Yoola Obukadde, or "Win Millions," an SMS game in Uganda; and 1,200 additional Mosino hospitality entertainment systems deployed during the year.

• On July 14, 2011, Amaya completed the acquisition of Chartwell Technology Inc. for consideration totalling Cdn $ 22.7 million. The Chartwell business was a significant contributor to revenue growth in the third and fourth quarters.

• Amaya secured a licence to operate online gaming in the Dominican Republic, offering a full range of online games.

• New gaming licenses were obtained in Uganda and Kenya, along with licenses in Malta, Alderney, Curacao, Gibraltar, Isle of Man and United Kingdom.

• The company has agreed in principle on the terms of an all-cash offer to acquire Cryptologic Limited. The offer remains open for acceptance until March 28, 2012.